Does Tech Companies Have a means to weather the Meltdown?

The Meltdown is flowing everywhere…

Its heat has started to impact tech
firms
Getting The UnParty Started: Seesmic Lays Off 1

Google Employees Watch In Horror As 60 Percen

VoIP Startup EQO Slashes Workforce by 65%

Source -TechCrunch
 The advises are pouring
in….
• Sequoia Rings the Alarm Bell: Silicon Valley Is

• Sequoia Capital’s 56 Slide Presentation Of

Doom
• Inside Details of Sequoia Capital’s Doomsday

• Angel Investor Ron Conway Emails His Portfoli

• Benchmark Capital Advises Startups To Conse

Source -TechCrunch
The Messages are Loud &
Clear…
• SURVIVAL IS GOING TO BE CRITICAL
• Cut spending. Cut fat. Preserve capital.
• Focus on quality. Reduce risk
• Make sure you have one year’s worth of cash.
• Don’t burn through your cash, for cash is king.
• Get cash-flow positive : Unprofitable companies
would have a tough time raising cash or getting
Acquired. (Need to augment valuations)
• Time to be really competitive : Go on the offensive
and pound on your competitors’ shortcomings
• Keep Marching……..
 Challenges will only increase in the
meltdown….. ?
• Consolidate and increase competitive position
– Erect entry barriers for competition in order to protect turf
– Augment ability to direct skilled resources and respond faster to customer’s business
– Launch new Services (Technology & Vertical business focused)
ci get art S

– Successfully Implement realistic revenue models.

– Acquire new skill sets (subject matter expertise and domain knowledge) to implement solutions

• Improve path to profitability (P to P) , Maximize Revenues

– Augment existing User/customer base
– Move to new geographic markets
– Increase sales and marketing efforts and its efficacy.
– Improve Product quality/Value and revenues

• Improve customer experience /satisfaction

– Quick turnarounds on customer issues and Application delivery
– Consistent, quality Application Implementation support
– Provide seamless upgrade path to applications delivered
noi t ar e p O
 Sustaining and Marching Ahead is Crucial..

Customer Sales Technology

Valuations experience capabilities/
Pipeline/Mar
/ keting Quality of
Increase

Cash Loyalty efficacy Service

Reserves/flo (QOS)
ws/New Partner Productivity
funds Eco- /
Op.Efficienc system Resource
es Utilization

Direct and Non-Core Direct and

Optimize

Indirect Operational Indirect

Costs work Risks
Gold plated
Time to
-Product
Market
features
So, How do you lower the
‘burn-out’ rate ,sustain and
scale your business?
The Solution?
 Global
Delivery
Scalability at a Lower Cost-
 Optimization Opportunities
• Lower Operational Costs significantly
• Redirect or Scale up Strategic work in the US
• Perform Non-Core or Low risk-Volumes at low cost
centers.
• Improved profits through IP /Asset contribution from a
lower cost base
• Improve Productivity and Efficiencies.
• Improve Time to Market or Time to Support
• Improve Customer/Partner stickiness.
• Improve Global Market Reach
 Doubling Productivity and Utilization!
Cognizant Offshore – Time Mgmt
IST Time Management
08:00am 10:00 12:00 14:00 16:00 18:00 8:00pm 22:00 24:00 02:00 04:00 06:00
US PST
7:30pm 21:30 23:30 01:30 03:30 06:30 07:30am 09:30 11:30 13:30 15:30 01:30

A
B
C
D

A Handshake: from on-site to off-shore (via telecon, e-mail, communication datasets)

B India Off-shore working (staggered over 12 hours)
C Handshake
D On-site working

 Cost Saving
 Faster Time to Market - “Follow the Sun”
 Leverage low-cost talent from offshore to handle spikes, new requirements , POC
 Global Delivery Benefits

• Decrease Costs and Improve revenues and Profit margins

• Improve speed-to-market by leveraging “follow-the-sun” distributed, offshore
based Operational Services
– Significant reduction in turn-around time (US Team and India Teams)
• Re-focus key resources on strategic activities while you move non core work to
low cost Global Delivery center
• Help Improve Your Partner & Customer satisfaction and loyalty by
– Pack more quality in the resources and services offered to your customers
– Providing 24x7 world-wide support
– Improving Productivity and turn-around time
• Increase agility, flexibility and reaction time by leveraging the off-shore location
for resource spikes to serve your business demands while keeping costs low.
• Mitigate operational risks by leveraging the alternate, off-shore location
• Redirect cost savings and available resources towards Sales, marketing and
branding
 Global Delivery –Cost Value model

Value pattern in the

Global Delivery model
Cost
/ Value Cost & value pattern
without Global Delivery

Cost pattern in the

Global Delivery Model.

Further cost
Cost
saving from
arbitrage
Initial setup operation
due to
costs optimization,
Global
increase in
Delivery
efficiencies

Time
 Why India,Why Chennai?
Lower cost •Net savings of 40-50% for resources (
Click here for More info..)
• Chennai is a leader in enabling Global IT (Click here 1,2)

Better •Higher Productivity increases..

performance •Access to better talent, higher employee satisfaction
•Young & energetic workforce
•Large number of educational institutions catering to IT
industry

Better quality •Reduced defect rates due to strong quality processes (SEI
CMM)
Faster •Follow-the-sun execution model (12 hrUS-India time
turnaround difference)
•Slash time to market, Time to support clients

Increase Profits •Leverage offshore to reduce costs and realign business

objectives

Environment •Stable political environment and a IT-friendly government

•Tax incentives for IT companies
 India - Some quick facts

More Information : Fact Sheets from Nasscom , the Voice of IT in India

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6311

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6312

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53615
We are here to rescue
and Help you!

contact
nagarajansankar@gmail.com